Today, it is not always possible to get a bank loan even for people with an ideal credit history. Banking institutions in Philippines are serious about lending questions and can deny of a loan for a variety of reasons, whether it is insufficient official income, or its complete absence, unsecured debts, etc. what can people do in this situation?
Consequences of non-compliance with the loan agreement
Before looking for ways to get a new loan, you need to figure out what exactly you face if you don’t pay your overdue loan and what the bank can do to return your money.
So, first, if you violate the terms of credit on your part, the money lender will begin to account for penalty interest. In any loan agreement, the amount of such fines and the terms of delay, after which they begin to accrue, are initially prescribed. Thus, if for some reason you do not make obligatory payments, your debt will begin to increase in an arithmetic progression and will simply become overwhelming for repayment.
If there is a loan debt, and you do not pay it for several months, the bank starts sending you notifications and without receiving any response from you, simply sells the debt to a collection company. Collectors use more aggressive debt collection methods and begin their work with systematic visits to your residential address or residence permit. It is worth noting that, despite the rather extensive powers of employees of such firms, they still do not have the right to seize your property without a court decision, and even more so to intimidate you with terrible consequences.
If the overdue loan is not paid back by the borrower over a long period, the bank or collection company files a lawsuit. As a result of such activities, lengthy litigation with the aim of collecting the debt from the personal property of the borrower begins. In this case, to win the case, you can only if you hire a very good lawyer, and this in turn will lead to unforeseen expenses, which in the end may not be justified.
Possible solutions to the problem
There is a loan debt, what to do to solve the problem? In order not to become a participant in lengthy legal proceedings and not lose property, you need to do the following:
- If financial problems arise, do not wait until interest begins to accrue, but immediately contact the bank for a choice of solutions to the problem.
- If you have already begun to receive letters of debt, then do not ignore them and immediately contact the bank employees to clarify all the nuances.
- In the event that the debt is transferred to the collectors, do not panic and get professional advice from lawyers.
- If you receive a notice stating that your case has been brought to court, do not hesitate and search for a lawyer.
- It is worth noting that if there is a loan in a bank overdue, then you can always resolve the issue peacefully. The fact is that most banking institutions rarely choose legal proceedings to get their money and agree that the borrower will pay the loan “body” in equal parts, even without interest.
- In order not to aggravate the already difficult situation, we recommend that you go towards the representatives of a banking institution, of course, only if they act according to the law and do not violate your rights.